40 results for 'cat:"Fraud" AND cat:"Fiduciary Duty"'.
Vice Chancellor Glasscock declines to dismiss contract claims stemming from a conversion agreement in which shares held by plaintiffs had been diluted because it was reasonably conceivable that plaintiffs had been promised equal shares would be maintained during the company's conversion into a Delaware entity. However, fraud claims should be dismissed for failure to plead the time and place that the representations had been made, and the fiduciary duty claim constitutes improper bootstrapping from the breach of contract claim.
Court: Delaware Chancery Court, Judge: Glasscock, Filed On: April 22, 2024, Case #: 2022-0665-SG, Categories: fraud, fiduciary Duty, Contract
J. Oxley finds that the lower court properly dismissed fiduciary duty claims that minority shareholders in a family farming corporation brought against their brother and father because they failed to provide evidence indicating the brother acted as an agent for the operation. Even though he was the operations manager, the brother would have been acting in his own interests or as an employee.
Court: Iowa Supreme Court, Judge: Oxley, Filed On: April 19, 2024, Case #: 22-0259, Categories: fraud, fiduciary Duty
Per curiam, the appellate division finds that the lower court improperly denied the accounting firm's motion for summary judgment on the village's fraud and conspiracy claims stemming from the village's credit downgrade by Moody's. These claims are duplicative of the village's accounting malpractice and breach of contract causes of action since they arise from the same facts. Reversed in part.
Court: New York Appellate Divisions, Judge: Per curiam, Filed On: April 3, 2024, Case #: 01800, Categories: fraud, fiduciary Duty, Accounting Malpractice
J. Grimes finds the lower court properly dismissed a special motion to strike filed by a church deacon and his wife after a donor donated over $1 million to an organization run by the wife, after a sermon. The donation was to help purchase a car and a home for a destitute family, with any leftover funds to be returned to the donor. The donor discovered that the house and car were purchased in the organization’s name, not that of the family in need. The donor filed suit alleging he was solicited for the funds which were used fraudulently to benefit the organization, not the family he believed he was helping. The deacon and his wife deny the claim, alleging the conversations with the donor were public in nature and about the family’s needs, and protected as they were part of a sermon and protected speech. The lower court disagreed, as the discussions were specific in nature and the issue was not so much about where the speech or conversation occurred, but rather about the alleged misconduct perpetrated by the deacon and his wife after the sermon. Affirmed.
Court: California Courts Of Appeal, Judge: Grimes, Filed On: March 29, 2024, Case #: B327668, Categories: fraud, fiduciary Duty, Contract
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J. Eskridge grants, in part, a management company's motion to file an amended complaint in its fiduciary duty and conspiracy claims against several parties. The proposed claims in the amended action relate back to the original, and amendment is not futile.
Court: USDC Southern District of Texas, Judge: Eskridge, Filed On: March 22, 2024, Case #: 4:21cv2698, NOS: Other Statutory Actions - Other Suits, Categories: Civil Procedure, fraud, fiduciary Duty
J. Bell affirms the lower court’s decision that a machinery producer has plausible evidence that a powder coat and finishing company committed fraud, among other things, when it created two similar companies and fraudulently transferred the producer’s money between them.
Court: USDC Western District of North Carolina, Judge: Bell, Filed On: March 21, 2024, Case #: 5:23cv59, NOS: Other Contract - Contract, Categories: fraud, fiduciary Duty, Contract
J. Russell mostly declines the stepfather's motion to dismiss in this fraud and fiduciary duty lawsuit concerning the administration of the mother's trust. The brothers have sufficiently alleged that the stepfather breached his fiduciary duties as the trustee by selling the house below market value, issuing an unsecured loan to his own son, and failing to pay ad valorem taxes on behalf of the trust. However, the brothers' claim for accounting is dismissed.
Court: USDC Western District of Oklahoma , Judge: Russell, Filed On: March 11, 2024, Case #: 5:23cv917, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, Trusts, fiduciary Duty
J. Robinson preserves certain claims for breach of fiduciary duty, constructive fraud, negligence and violations of the North Carolina Securities Act in this lawsuit between 16 aging investors and related financial groups that allegedly recommended bad investments to the investors. Some of those allegations are well made, while others fail to warrant relief.
Court: North Carolina Business Court, Judge: Robinson, Filed On: February 26, 2024, Case #: 2024-NCBC-10, Categories: fraud, Securities, fiduciary Duty
J. Trauger denies the plaintiff nonprofit corporation's motion for a preliminary injunction and partially grants the fund defendants' dismissal motion in this lawsuit asserting claims under the federal Exchange Act, as well as the Tennessee Securities Act and the Tennessee Blue Sky Law. The complaint alleges that the defendants misrepresented that a certain fund was a success and that they failed to disclose that it "had been losing hundreds of thousands of dollars in 2021." However, the corporation fails to show irreparable harm, for purposes of the requested injunction, as it only entrusted money to the defendants. Accordingly, its alleged injury could be remedied "with economic damages at the conclusion of litigation."
Court: USDC Middle District of Tennessee , Judge: Trauger, Filed On: February 20, 2024, Case #: 3:23cv685, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, Securities, fiduciary Duty
J. Hicks grants the Securities and Exchange Commission's motion for partial summary judgment in its case against a bestselling author and wealth coach that sold oil and gas securities as an unregistered broker. No question of material fact exists that she acted as an investment adviser who failed to disclose conflicts of interest such as her entitlement to compensation for the sales. Claimed exclusions do not exempt the coach and her associates from their fiduciary duties.
Court: USDC Nevada, Judge: Hicks, Filed On: February 16, 2024, Case #: 3:22cv269, NOS: Securities/Commodities/Exchange - Other Suits, Categories: fraud, Securities, fiduciary Duty
J. Carlyle finds that the lower court properly granted summary judgment for the defendant law firm in this suit brought by a liquidating trustee alleging breach of fiduciary duty, legal malpractice, fraudulent transfer and participatory liability, based on the firm's involvement in a recapitalization plan. Summary judgment was appropriate "based on the absence of standing" regarding certain "allegedly assigned causes of action." Also, the firm negated an essential element of the breach of fiduciary duty claim, specifically as to an alleged improper benefit. Affirmed.
Court: Texas Courts of Appeals, Judge: Carlyle, Filed On: February 13, 2024, Case #: 05-23-00264-CV, Categories: fraud, fiduciary Duty, Legal Malpractice
J. Flanagan partially denies a crop insurance company’s motion for summary judgment after a farm alleged the company’s agent breached fiduciary duty and committed fraud and negligence when the company did not properly pay on a claim. The farm was able to show sufficient evidence that the agent misrepresented the kind of coverage and amount available to the farm, so their allegations against him survive, but not their claims against the company itself.
Court: USDC Eastern District of North Carolina, Judge: Flanagan, Filed On: January 26, 2024, Case #: 7:21cv126, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, fiduciary Duty, Negligence
Vice Chancellor Laster declines to dismiss claims stemming from an asset-swap transaction that left a company holding the bag of near-worthless investments while two hedge funds, insurers, and a reinsurer made off with the one good investment. Delaware law applies to the mostly fiduciary-related counts, which pleaded the required elements except for claims alleging fraudulent trading under Cayman Islands' law.
Court: Delaware Chancery Court, Judge: Laster, Filed On: January 25, 2024, Case #: 2019-0431-JTL, Categories: fraud, fiduciary Duty
J. Benavides finds that the lower court properly granted summary judgment to the independent executrix of the sister's estate based on the affirmative defense of limitations, in this lawsuit alleging that the sister had breached her fiduciary duty to the appellant. The appellant argues that the summary judgment ruling was inappropriate based on the discovery rule and the fraudulent-concealment doctrine. However, he was not "entitled to the benefit of the discovery rule," and the fraudulent-concealment doctrine is inapplicable. Affirmed.
Court: Texas Courts of Appeals, Judge: Benavides, Filed On: January 4, 2024, Case #: 13-22-00576-CV, Categories: fraud, Wills / Probate, fiduciary Duty
Vice Chancellor Glasscock allows plaintiff to continue unjust enrichment claims contending a company and its controllers were connected with a self-tender offer that turned out to be inadequate after the company was sold for a higher price per share. The unjust enrichment claim was related to existing fiduciary duty claims but was sufficiently distinct to survive dismissal at the pleading stage.
Court: Delaware Chancery Court, Judge: Glasscock, Filed On: November 29, 2023, Case #: 9250-VCG, Categories: Civil Procedure, fraud, fiduciary Duty
J. Mercier finds that the trial court improperly granted two motions for contempt and issued a default judgment against the investment company in a fraud and breach of fiduciary duty action brought by the real estate company. The first contempt order finding that the investment company had interfered with the real estate company's management of properties was vague and failed to provide definitive terms for the investment company to purge its contempt. The order did not provide a due date for the investment company to pay all income from the properties into the court registry. Reversed.
Court: Georgia Court of Appeals, Judge: Mercier, Filed On: October 20, 2023, Case #: A23A0871, Categories: Contempt, fraud, fiduciary Duty
J. Newey finds a lower court properly ruled in favor of a liquidated hotel portfolio on fraud and fiduciary duty claims against two hotel developers. The hotel developers argued that they are not obligated to pay equitable compensation to a lender liquidator. However, although the hotel portfolio did not suffer equitable loss, it is still entitled to compensation from the hotel developers based on their gain of fraudulent profits. Affirmed.
Court: Her Majesty's Court of Appeal, Judge: Newey, Filed On: October 4, 2023, Case #: CA-2022-1487, Categories: fraud, fiduciary Duty, Banking / Lending
J. Griggsby denies in part a cryptocurrency company's motion to dismiss allegations brought by the creator of its business model after he recruited a group of partners who ultimately pushed him out. Personal jurisdiction cannot be applied to the partners who do not reside in Maryland. However, the creator does successfully state a conversion claim as to the company's website and social media accounts under Utah law, where the creator lives.
Court: USDC Maryland, Judge: Griggsby, Filed On: September 22, 2023, Case #: 1:22cv1085, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, fiduciary Duty, Conversion
J. Nathan finds that the district court properly held that a business decision to sell profitable parts before filing Chapter 7 bankruptcy constituted self-dealing and fraudulent transfer. The director who hatched the plan, which collapsed on its own shortly after being implemented, breached fiduciary duties by failing to seriously consider third-party offers, which illustrated her fraudulent intent. Meanwhile, the damages assessment totaling $39.2 million was rooted in future earnings of profitable assets. Affirmed.
Court: 2nd Circuit, Judge: Nathan, Filed On: August 28, 2023, Case #: 21-2547; 21-2576, Categories: Bankruptcy, fraud, fiduciary Duty
J. Wright grants JPMorgan Chase's motion to dismiss an account-holder's allegations that the bank breached its fiduciary duty and aided and abetted fraud when an unauthorized signatory was able to withdraw $199,000 over eleven separate transactions. The account holder has not shown that depositing funds into its account created a fiduciary duty between it and the bank, as banks are not fiduciaries for depositors, therefore their relationship is instead founded on contract. The account holder has not shown that the bank had knowledge of the unauthorized signatory's fraudulent conduct. The account holder is granted leave to amend.
Court: USDC Central District of California, Judge: Wright, Filed On: August 4, 2023, Case #: 2:23cv699, NOS: Other Fraud - Torts - Personal Property, Categories: fraud, fiduciary Duty, Negligence
Vice Chancellor Zurn grants judgment on the pleadings to a biomedical research and development company and two executives charged with misleading an investor through a repurchase offer. None of the allegations amount to fraud and fraudulent inducement, and the release signed by the shareholder is unambiguous in barring a claim for breach of fiduciary duty.
Court: Delaware Chancery Court, Judge: Zurn, Filed On: July 28, 2023, Case #: 2022-0509-MTZ, Categories: fraud, fiduciary Duty